Spark New Zealand, formely New Zealand Telecoms, last week announced that it plans to undertake an on-market share buyback of up to 40 million ordinary shares for an aggregate purchase price of up to NZ$100 million, after a series of asset sales which left its balance sheet under-leveraged. The ordinary shares will be acquired this year on the NZX Main Board.
The sales of assets that led to its balance sheet being under-leveraged involve recent diverstment in Telecom Rentals Limited and the sale of its 60% stake in Telecom Cook Islands. According to Spark, the share buyback will ensure that the company's gearing returns to a more appropriate rate, while also maintaining its 'A band' credit rating with Standard & Poor's.
